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Life Insurance
- Coverage against the risk of premature demise
- Wealth creation with savings plans
- Tax benefits* under Section 80C and 10(10D)**
Why Life Insurance?
Life Insurance acts as a safety net for your loved ones. By making small, regular contributions – known as premiums – you unlock financial support for your loved ones when you are not around to watch over them. This wealth can ensure your family’s financial security for the future.
Top Benefits
Financial security
Ensure your loved ones have access to funds to cover immediate and long-term expenses in your absence.
Income replacement
Receive a monthly income option upon the diagnosis of Critical Illnesses, which can be used for treatment or to replace lost income.
Tax Saving*
Get tax benefits on money paid towards your Life Insurance premiums and on the Death Benefit payout.
Wealth creation
Build cash value over time that can be used as an emergency fund or to supplement retirement income.
Our Life Insurance Plans
Term Life Insurance
ABSLI DigiShield Plan
UIN: 109N108V11
KEY FEATURES 
- Lump sum or monthly payout options
- Spouse cover under the same plan
- Coverage for terminal illnesses
Life Cover
₹1 Crore
Premium
Starts at ₹542/Month1
Savings Plan
Retirement Plan
ABSLI Nishchit Aayush Plan
UIN: 109N137V06
KEY FEATURES
- Guaranteed# income
- Customisable benefit payout options
- Lump sum benefit at maturity
Income + Maturity Amount
₹26 Lakhs2Premium
₹8,700/ month for 10 yearsABSLI Assured Savings Plan
UIN: 109N134V08
KEY FEATURES
- Guaranteed# maturity corpus with Loyalty Additions
- Spouse cover under the same plan
- Enhanced coverage through riders
Maturity Amount
₹30.48 lakhs3 Lumpsum at MaturityPremium
₹10,000/month for 10 yearsABSLI Guaranteed Annuity Plus
UIN: 109N132V09
KEY FEATURES - Guaranteed# income with annuity options
- Allows increasing annuity with top-ups
- 10 Plan options to suit your needs
Pay Single Premium of
₹10 lakhs
Receive Annuity:
₹89,4964
Compare Our Life Insurance Plans
A quick glance at the various features and benefits of different types of Life Insurance plans.
| PLAN TYPE | TERM PLAN | SAVINGS PLAN | RETIREMENT PLAN | ULIP |
|---|---|---|---|---|
Best For
|
Individuals looking to protect their family’s finances in the case of their untimely demise | Individuals wanting to grow wealth through regular savings | Individuals trying to build a retirement fund | Individuals looking for a well-diversified portfolio |
| Policy Period (Years)
|
5 years onwards and till whole life under some plans | - | Whole Life | 10-20 |
| Maturity Benefits
|
Available under return of premium term plans |  |
|
|
| Premium Flexibility
|
Flexible | Fixed | Flexible | Flexible |
| Risk Factor
|
 |
|
|
Based on risk appetite |
| Liquidity
|
Low | Moderate | Low | High after the lock-in period of 5 years |
| Tax Benefits*
|
Yes (On premium and death benefit) | Yes (On premium) | Yes (On premium and maturity benefit) | Yes (On premium and maturity/death benefit) |
Get Insured In 5 Easy Steps
Pick a plan that fits your needs.
Share the required personal details.
Select sum assured, riders, payment cycle, etc.
Go through the coverage and exclusions.
Complete payment and submit documents.
04
Go through the coverage and exclusions.
05
Complete payment and submit documents.
Things To Keep In Mind
As per the Income Tax Act, 1961
- Under Section 80C: Deduction on premium payments up to ₹1,50,000
- Under Section 10(10D)**: Exemption on death benefit
Important claim information:
- This applies to death claim as well as rider claim
- You can make a claim online or at a branch
- Suicide and self-harm
- Life-threatening activities
- Maternity-related death
- Aviation-related death
- Pre-existing diseases
- Participation in illegal activities
Customer Satisfaction Stories
Hear from our customers what they have to say about their experience.
Aditya Birla Sun Life Insurance Customer
Due to seamless branch support and timely communication from ABSLI, my maturity payout process was quite smooth.
Aditya Birla Sun Life Insurance Customer
Haryana, India
Aditya Birla Sun Life Insurance Customer
Entire surrender process was quite smooth with timely documentation and payout. Great experience!
Aditya Birla Sun Life Insurance Customer
Gujarat, India
Table of Contents
Why is a Life Insurance plan necessary?
-
Financial Security
Ensures your family’s financial future is unaffected even in your absence
-
Investment opportunities
Build wealth overtime while getting suitable protection
-
Tax Benefits*
Avail of tax benefits, as specified in Section 80C and Section 10(10D)** of India's Income Tax Act
-
Retirement planning
Achieve retirement goals and leave a legacy for loved ones
-
Peace of mind
Rest assured your loved ones will be cared for when you are not around
How does Life Insurance work?
- Choose a policy: Consider your needs and responsibilities - children’s education, family’s lifestyle, debts etc.
- Get a quote: Your premium is decided based on your health, lifestyle, medical history etc.
- Pay regular premiums: The policy stays in effect as long as the premiums are paid.
- Claim death benefit: Your beneficiaries can raise a claim and receive the death benefit if you die during the policy period.
- Get maturity benefit: With certain policies, you can get maturity benefit if you survive the policy period.
What are the types of Life Insurance that Aditya Birla Capital offers?
Term Plans
It provides coverage for a specific period of time, called the "term". In case of your death during the term, your beneficiaries will receive the lump sum money but there is no payout if you survive the period.
Savings Plans
It helps you build wealth through regular and disciplined savings. It offers partial withdrawals after the lock-in period and you can receive the whole accumulated amount upon the plan's maturity.
Child Plans
These are investment-cum-insurance products where the life cover secures your child’s financial future, while the investment grows your money. It allows partial withdrawals to meet immediate financial needs.
Retirement Plans
It helps you accumulate wealth and generate a steady income during your retirement with the help of investment. You can get a lump sum, regular income, or a combination of both.
ULIP Plans
These plans invest in market-linked instruments to create wealth over time. ULIP plans have both death as well as maturity benefits. Most plans allow partial withdrawals after the end of the lock-in period.
Endowment Plans
This plan combines savings and protection. In case of your demise during the term, your family receives a Guaranteed# sum. Otherwise, you get the accumulated amount along with the interest earned.
Critical Illness Plans
This is a type of insurance that pays out a lump sum of money if you are diagnosed with a critical illness. The money can be used to cover your medical expenses or help you replace your lost income.
When should I buy Life Insurance?
Are you single?
This is a good time to purchase Life Insurance as you will likely be in good health and your Life Insurance premiums will be lower.
Are you newly married?
You have new responsibilities now that you didn’t have before. You need Life Insurance now to ensure your spouse is financially secured if something were to happen to you.
Are you married with kids?
As a parent, a life insurance plan can ensure that even if you weren’t around, your child’s education, marriage etc. can go on without any financial difficulties.
Are you close to retiring?
It can help ensure that your family is financially secure and can maintain their standard of living in your absence. It also helps you leave a legacy for your loved ones.
Life insurance is for all ages
If there are people dependent on you or you have any financial obligations like debts or loans, then you should consider getting life insurance.
How much Life Insurance cover do I need?
20-30 years old
You may not have any dependents yet, but you may have debts to pay off, such as student loans or a home loan. Your life insurance policy should be enough to pay those off. A basic method is to choose 15 times the annual income as the sum assured.
30-40 years old
You may have young children now, so your policy should be able to financially secure them for the next 8-10 years. So, 10-12 times your annual income is a good idea.
40-50 years old
With your kids going to college or getting married, your financial obligations are likely to be at their highest now so you should ideally opt for an amount at least 15-20 times your annual income.
50-60 years old
Your only major responsibility now might be your spouse. But you still want to leave a legacy for your grown-up children, so you can opt for a policy that is 10-12 times your last annual income.
60+ years old
At this age a Life Insurance cover that equals 5-10 times your annual income should be good enough. This would make sure your spouse is financially secured when you are not around.
What should I check before choosing a plan?
Claim settlement ratio (CSR)
It is the percentage of claims that an insurance company has paid out in full. A higher CSR indicates that the company is more likely to accept your claim too.
Years in existence
The longer an insurance company has been operating, the more likely it is to be financially stable and able to pay out your claims.
Assets under management (AUM)
This is a measure of the size and financial strength of the company. A larger AUM indicates that it is a reputed company and a lot of people trust it.
Ratings across platforms
Insurance companies are rated by different agencies. A higher rating indicates that it is more trustworthy and likely to pay out your claims.
Customer reviews
Reading customer reviews can help you identify any potential red flags or issues that customers have faced with the insurance company.
Types of Plans Offered
Not all insurance providers have the same plans, so make sure you go with one that offers the plans and coverage you need.
Factors to consider when choosing a life insurance plan
- Age and health: The younger and healthier you are, the lower your premium will be.
- Lifestyle: Assess your lifestyle to know the expected expenses and then choose a sum assured which would be able to meet them.
- Current Debt: Choose a sum assured which would be sufficient to pay off your existing debts so that the burden doesn’t fall on your family.
- Children’s future: The payout should be able to finance your children’s future needs.
- Policy Features: Check for riders you may need, payout options, investment exposure etc.
What factors can affect my insurance premium?
Age
Younger people typically have lower premiums as they are less likely to get sick or injured.
Medical History
If you have any health problems, you may have higher premiums. This is because the insurance company is more likely to have to pay out a claim for you.
Lifestyle
Your lifestyle choices, such as smoking, drinking, and being overweight can increase your risk of health problems, which can also affect your premiums.
Profession
Some professions are considered riskier than others, such as construction or firefighting. If you have a risky job, you will likely have higher premiums.
Policy type
The type of policy you choose can also affect your premium. For example, term life insurance is typically less expensive than life insurance with maturity benefits.
Sum insured
The higher the sum insured, the higher your premium will be.
What are the eligibility criteria to get started with Life Insurance ?
Check your eligibility and take the first step towards financial security
Age 30 days to up to 65 years depending on the plan selected.
Citizenship Indian citizen residing in India at the time of purchase.
Income Varied criteria depending upon plan.
Medical tests Underwriting of genuine medical history.
Job profile The level of occupational risk needs to be assessed.
Smoking habits Affect your premium.
What documents are needed to purchase Life Insurance?
Proposal form
Age proof
Photo identity proof
Address proof
Medical report
Income proof
PAN/ Aadhaar card
What riders are available with these Life Insurance plans?
Enhance your Life Insurance policy with suitable riders that provide additional protection for you and your loved ones at a nominal cost.
ABSLI Critical Illness Rider
UIN: 109B019V03
Sum assured on diagnosis of 4 critical illnesses
ABSLI Accidental Death and Disability Rider
UIN: 109B018V03
Sum assured on accidental disability or death
ABSLI Hospital Care Rider
UIN: 109B016V03
Cash benefit in case of hospitalisation
ABSLI Surgical Care Rider
UIN: 109B015V03
Benefit amount for medically essential surgery
ABSLI Waiver of Premium Rider
UIN: 109B017V03
Waiver of future premiums for the rest of the policy term
ABSLI Accidental Death Benefit Rider Plus
UIN: 109B023V02
Provides an additional payout in the case of an accidental death
What Are The Available Payout Options?
-
Lump sum
The entire amount is paid out to the beneficiary in one go. This option provides maximum flexibility in using the funds for immediate expenses, debts or any other financial needs.
-
Instalment
The beneficiaries can opt for periodic instalment payments such as monthly, quarterly, etc. This can help provide a steady income stream over an extended period.
-
Annuity
The beneficiary receives periodic payments for the rest of their life. This ensures a Guaranteed# income stream, especially during retirement.
-
Combination
The beneficiaries can mix and match the payout options. For example, they may choose to get a portion as lump sum and the rest as periodic payments.
FAQs on Life Insurance
Life Insurance is a type of insurance policy that provides financial protection to individuals and their families in the event of an unforeseen death or disability. When you buy a Life Insurance policy, you pay regular premiums to the insurance company, and in exchange, the insurer agrees to pay a death benefit or maturity benefit in the form of a single, lump sum payment to the beneficiaries of the policy upon the death or disability of the policyholder.
You choose a policy depending on your needs - coverage for a specific period, coverage for whole life, coverage with wealth creation, etc. Once you apply for it, the insurer assesses your risk factor based on age, medical history, lifestyle, etc. to determine the premium. The healthier and younger you are, the lower the premium. Depending on your policy, you pay regular premiums to stay insured. This could be monthly, quarterly, yearly, or as specified. In case of your demise during the coverage period, the insurer pays the amount mentioned to the beneficiary of the plan. It’s up to the beneficiary how they use this amount. If your policy has a maturity benefit, the insurer pays you the sum assured along with the bonuses accumulated over time, if you survive the policy period. In the case of term insurance, you don’t get anything.
Step 1: Consider your age and health: The younger and healthier you are, the cheaper your life insurance will be. If you have any health problems, you may need to pay higher premiums or may not be able to get life insurance at all.
Step 2: Consider your income and expenses: The amount of life insurance you need will depend on your income and expenses, keeping in mind future inflation. A common rule of thumb is to get life insurance that is equal to 10 to 15 times your annual income.
Step 3: Consider your liabilities and dependents: If you have family members who depend on you, then you will need enough life insurance to provide for their future financial needs.
Step 4: Consider your financial goals: If you have any financial goals, such as saving for retirement, you may need life insurance to help you achieve those goals.
Step 5: Consider the features of the policy: Some life insurance policies offer features such as riders at an additional cost, which can provide supplementary coverage for things like critical illness or disability.
- Financial security: Knowing that your family will be provided for in the case of your untimely death is the greatest benefit of getting Life Insurance.
- Investment Opportunities: Some Life Insurance policies such as ULIPs offer investment opportunities in which your premium paid is split and invested in a portfolio that may include stocks, bonds, etc. It's a win-win as you get Life Insurance and a chance to build savings over the years.
- Tax benefits*: You can avail of tax benefits, as specified in Section 80C* and Section 10(10D)** of India's Income Tax Act, subject to the fulfilment of the criteria mentioned in it.
- Retirement planning: Life Insurance can help you achieve your retirement goals and leave a lasting legacy for your family and loved ones.
- Peace of mind: Life Insurance can give the policyholder peace of mind knowing that their family and loved ones will be financially taken care of in the event of their untimely death.
- Guaranteed# returns: Traditional life insurance plans offer guaranteed benefits on death or maturity. This helps you create a secured corpus for your family and for your financial goals.
- Riders: Add-on benefits called "riders" provide coverage in the event of critical illness, incapacity, or accidental death, and are included in most Life Insurance policies. These riders provide extra security for the policyholder and their beneficiaries.
No, in India, the proceeds from a Life Insurance policy are generally tax-free under Section 10(10D)** of the Income Tax Act, 1961. However, proceeds from a Life Insurance policy issued on or after 1st April 2023 shall be taxable as income from other sources if the cumulative annual premium payable by the taxpayer for Life Insurance policies exceeds ₹5,00,000. This means that if you or your nominee receive a payout from a Life Insurance policy, the amount received will be subject to income tax, only if the annual premium amount exceeds ₹5,00,000.
For example, say you buy a policy on 1st January 2022 and the premium that you pay is ₹6,00,000. The maturity benefit received is ₹30,00,000. Since you have bought the policy before 1st April 2023, the maturity benefit of ₹30,00,000 would be tax-free.
In another case, suppose you buy the policy on 1st May 2023 and the premium is ₹6 lakhs. In this policy, the returns earned on maturity would be taxed in your hands at your income tax slab rates.
Additionally, the premium paid towards the online Life Insurance policy may be eligible for tax deduction under Section 80C of the Income Tax Act, subject to a maximum limit of ₹1,50,000 per year.
However, there are certain exceptions to this rule. If the premium paid on the policy is more than 10% of the sum assured for policies issued after April 1, 2012, then the amount received upon maturity or surrender will be taxable. Additionally, if the policy is transferred to another person for consideration, the proceeds may also be taxable.
However, do note that in the case of the death of the insured, where the nominees receive the policy maturity proceeds, it will be tax-free in the hands of the nominees even if the premium paid in any year crosses the prescribed percentage of the sum assured.
It's important to note that the tax laws in India are subject to change, so it's always a good idea to consult a tax professional for the most up-to-date information.
Term Insurance is a type of Life Insurance that provides coverage for a specified term or period. It is a straightforward and relatively affordable form of Life Insurance that offers financial protection to the policyholder's beneficiaries in the event of the insured individual's death within the specified term.
A Term Insurance plan not only offers a financial safety net to your family against day-to-day expenses, loans, liabilities, EMIs, etc. but is also capable of fulfilling its future needs such as your child’s higher education, child’s marriage, etc. Among all the Life Insurance products, Term Life Insurance offers the highest life coverage for the lowest premiums.
Term Insurance is a good choice for people who want to protect their loved ones financially in case of their unexpected demise.
If you are one of these then you should consider a Term Insurance policy:
- Main income earner: If you support your family financially, Term Insurance can help them stay financially secure if you pass away.
- Newlywed: If you are newly married and planning a family, Term Insurance can help protect your spouse and children in case of your death.
- Parent: If you have young children, Term Insurance can help pay for their education and other expenses if something were to happen to you.
- Business owner: If you own a business with debt, Term Insurance can help pay off the debt after you are gone.
- Single person: Even if you don't have dependents, Term Insurance can provide financial security to your parents or other family members in case of your untimely demise.
- Affordable premiums: Term Insurance premiums are typically lower than other types of Life Insurance because they only cover you for a specific period.
- Financial security: Term Insurance pays a death benefit to your beneficiaries if you pass away during the policy term. This can help them cope with the financial burden in case of your untimely demise.
- Flexibility: You can choose the coverage amount and policy term that best meets your needs and budget.
- Tax benefits*: Term Insurance premiums are eligible for tax deductions under Section 80C of the Income Tax Act of India. The death benefit is also tax-free for your beneficiaries under Section 10(10D)** of the Income Tax Act.
- Peace of mind: Knowing that your loved ones will be financially protected if something were to happen to you can give you peace of mind.
- No investment risk: Unlike other Life Insurance policies, Term Insurance plans do not have an investment component as it doesn't combine insurance and investment.
- Easy to understand: Term Insurance plans are simple and easy to understand.
- Choose coverage amount: Pick the amount of money you want your loved ones to receive in case of your untimely demise.
- Choose policy tenure: Select the coverage period that best meets your financial needs.
- Pay premiums: Pay the premium annually, semi-annually, quarterly, or monthly as per your policy.
- Enjoy coverage: You're covered for the policy period as long as you pay your premiums on time.
- Claim filing: In case of your passing away during the policy period, your nominee files a claim with the insurance company.
- Claim settlement: The insurance company verifies the claim and pays out the lump sum money to your nominee.
- Policy renewal: You can renew the policy when it expires, but the premium will be higher, and you may have to undergo a medical checkup.
A Savings Plan is a financial product designed to help individuals save and grow their money over a specific period of time. It provides a disciplined approach to saving by setting aside a predetermined amount of money regularly.
Here are some key reasons why you should invest in a Savings Plan:
- Financial discipline: Savings Plans encourage you to save regularly and consistently, helping you develop a habit of saving and build financial discipline.
- Achieve financial goals: Savings Plans can help you achieve your financial goals, such as buying a home, funding your child's education, or planning for retirement and working towards achieving them systematically.
- Wealth accumulation: Savings Plans help you save money and grow your wealth through interest, returns on investment, or bonuses.
- Diversification: Investing in different types of Savings Plans allows you to diversify your financial portfolio and reduce risk.
- Emergency fund: A Savings Plan can serve as an emergency fund, providing you with a financial safety net during unexpected events.
- Tax benefits: Savings Plans are eligible for tax benefits* under Section 80C of the Income Tax Act, 1961.
- Financial security: A Savings Plan can provide you and your family with financial security, especially during your retirement years.
- Beat inflation: Savings Plans that offer returns higher than the inflation rate can help you maintain and grow your purchasing power, safeguarding your financial future.
Savings Plans can benefit almost everyone, but they are especially ideal for the following groups of people:
- Young professionals: Starting a Savings Plan early in your career can help you accumulate wealth over time and build a strong financial foundation for the future.
- Parents: Savings Plans can help parents secure their children's future by building a financial safety net for their education, marriage, or other milestones.
- Couples: Couples can use Savings Plans to achieve shared financial goals, such as buying a home, planning for vacations, or preparing for retirement.
- Risk-averse investors: Savings Plans are a good option for investors with a low-risk appetite, as they offer stable returns and a lower risk profile than other investment options such as equities or mutual funds.
- People planning for retirement: Savings Plans can help people planning for retirement ensure a steady income stream during their post-retirement years and maintain their lifestyle and financial independence.
- People looking for tax savings: Savings Plans that offer tax benefits under the Income Tax Act, such as Life Insurance Savings Plans or tax-saving fixed deposits, can be a good option for individuals looking to save on taxes.
- Emergency fund creators: Anyone looking to create an emergency fund to cover unexpected expenses or financial crises should consider a Savings Plan as a safe and stable option.
Aditya Birla Sun Life Insurance (ABSLI) offers multiple Savings Plans:
ABSLI Nishchit Aayush Plan
- Guaranteed# income
- 5 income variants to choose from as per your needs
- Lump sum benefit at policy maturity
- Life cover across policy term
ABSLI Assured Savings Plan
- Loyalty additions are added to the plan benefits to boost maturity corpus
- Option to cover your spouse by choosing joint life protection
- Comprehensive Life Insurance cover
- Guaranteed# maturity benefits
- Option to enhance your cover with riders
ABSLI Savings Plan
- Guaranteed# additions for the first 5 policy years
- Regular bonus starting from the first policy year
- Flexibility to choose life cover and policy term
- Additional sum assured payable in case of accidental death
Riders are add-ons that you can purchase with your savings plan to increase its coverage and provide more comprehensive protection. The riders available for Savings Plans are:
- Accidental death benefit rider (UIN: 109B023V02): This rider provides an additional payout to the nominee if the policyholder passes away due to an accident.
- Critical illness rider (UIN: 109B019V03): This rider offers a lump sum payout if the policyholder is diagnosed with a covered critical illness, such as cancer, heart attack, or stroke.
- Total and permanent disability rider (UIN109B010V04): This rider provides a lump sum payout or waiver of future premiums if the policyholder becomes permanently disabled.
- Waiver of premium rider (UIN: 109B017V03): This rider waives off the future premiums of the Savings Plan if the policyholder becomes disabled or critically ill, ensuring the plan continues.
- ABSLI hospital care rider (UIN: 109B016V03): Get daily cash benefit, additional ICU benefit, and lump sum recuperating benefit upon hospitalisation.
A Retirement Plan or Pension Plan is a money-saving strategy that helps people build up a nest egg and have a regular income during their retirement years. These plans offer a variety of investment options, such as pension policies, retirement savings plans, and insurance policies, to meet different financial goals and risk tolerances. The main goal of a Retirement Plan is to ensure financial security and maintain a comfortable lifestyle in retirement.
- Financial independence: Retirement Plans can help you achieve financial independence in retirement by providing you with a regular income stream or a lump sum payout.
- Maintaining your lifestyle: A well-planned retirement strategy can help you maintain your desired lifestyle after you stop working, so you can continue to enjoy the things you love.
- Covering unexpected expenses: Retirement Plans can help you cover unexpected costs, such as medical emergencies or home repairs, without depleting your savings.
- Protecting against inflation: As the cost of living increases, having a Retirement Plan can help ensure that your income keeps up, so you can maintain your purchasing power.
- Mitigating longevity risk: As life expectancy increases, the risk of outliving your savings grows. A Retirement Plan can help mitigate this risk by providing you with a steady income or a lump sum to support you throughout your retirement years.
- Tax benefits*: The Income Tax Act's Section 80C allows for tax deductions on Retirement Policy premiums up to a total of ₹ 1,50,000 each fiscal year. Additionally, the maturity and death benefits received from a Retirement Plan are tax-free under Section 10(10A) of the Income Tax Act.
- Peace of mind: Knowing that you have a well-structured Retirement Plan in place can give you peace of mind, so you can enjoy your retirement years without financial stress.
A Retirement Plan is a financial strategy that helps you save for and generate income during retirement. It typically involves the following steps:
- Choose a plan: There are many different types of Retirement Plans available, so it's important to choose one that aligns with your financial goals, risk appetite, and investment horizon. Consider factors such as returns, flexibility, and reliability when making your decision.
- Make contributions: Once you've chosen a plan, you'll need to make regular contributions (premiums) to it. You can usually choose to contribute a lump sum or make regular payments, such as monthly, quarterly, or annually, as per the selected plan.
- Invest your contributions: The money you contribute to your plan is invested in a variety of financial instruments, such as stocks, bonds, and mutual funds. The specific investments chosen will depend on the type of plan you have and your risk appetite.
- Accumulate wealth: Over time, your contributions and the investment returns they generate will grow, creating a retirement corpus.
- Reach vesting age: Most Retirement Plans have a vesting period, which is the amount of time you must contribute to the plan before you have full ownership of your account. After you have vested, you can start receiving benefits from your plan.
- Receive payouts: Once you've reached the vesting age, you can start receiving payouts from your plan. These payouts can be in the form of a lump sum, regular income (annuity), or a combination of both.
- Receive death benefits: Some Retirement Plans offer death benefits, which are paid to your beneficiaries in the event of your demise. This can help ensure that your loved ones are financially secure.
Choosing the right Retirement Plan/Pension Plan is essential for securing your financial future. Here are some key factors for you to consider:
- Financial goals: What do you want to achieve in retirement? Do you need a regular income stream, a lump sum payment, or both? Once you know your goals, you can choose a plan that is designed to help you reach them.
- Risk appetite: How much risk are you comfortable with? Retirement Plans offer a variety of investment options, ranging from conservative to aggressive. Choose a plan that matches your risk tolerance and investment horizon.
- Investment horizon: How many years do you have until retirement? The longer your investment horizon, the more time your money has to grow. You may be able to afford to take on more risk if you have a long investment horizon.
- Flexibility: Retirement Plans should offer flexibility in terms of investment options, payout frequencies, and annuity choices. This allows you to customise the plan to meet your individual needs.
- Returns: Compare the historical returns of different Retirement Plans. Choose a plan that offers competitive returns on investment.
- Charges & fees: Retirement Plans typically charge a variety of fees, such as fund management fees, policy administration charges, and surrender charges. These fees can reduce your returns, so it is important to choose a plan with low fees.
- Tax benefits: Some Retirement Plans offer tax benefits* under the Income Tax Act, 1961. These benefits can help you save money on taxes while saving for retirement.
- Reputable provider: Choose a Retirement Plan offered by a reputable insurance company or financial services provider with a strong track record and reliable customer service.
- Reviews and ratings: Read online reviews and ratings of different Retirement Plans before you make a decision. This can give you insight into the experiences of other customers.
The eligibility criteria for Retirement Plans vary depending on the type of plan and the provider. However, some common eligibility requirements include:
- Age: Retirement Plans typically have a minimum and maximum entry age, which may range from 18 to 65 years or more. The entry age may differ based on the plan's features and payout options.
- Nationality: Generally, the applicant must be an Indian citizen or Non-Resident Indian (NRI) to be eligible for a retirement plan in India.
- Employment status: Some Retirement Plans, such as the Employee Provident Fund (EPF), require the applicant to be a salaried employee, while others, like the National Pension System (NPS), are open to both salaried and self-employed individuals.
- Income: Certain Retirement Plans may require the applicant to have a minimum annual income to be eligible. This requirement ensures that the individual can afford the premiums and maintain the policy until maturity.
- Existing retirement coverage: Some Retirement Plans may have specific requirements regarding existing retirement coverage. For example, if you are already covered under a mandatory retirement savings scheme, you may need to check if you can also invest in a voluntary retirement plan.
- Health status: Some Retirement Plans may require a medical examination or ask you to disclose your health status, as this information could affect the premium amount and terms of the policy.
ULIP, or 'Unit Linked Insurance Plan' is a market-linked insurance plan that offers both Life Insurance and investment opportunities in which part of the premium is used to pay for a lump sum of money that is paid out to your beneficiaries in case of your untimely demise during the term of the policy, and the remaining part of the premium is invested in a variety of funds, such as equity funds, debt funds, or a combination of both. After policy maturity, you will receive the maturity benefit.
1. Premium payment: The policyholder pays a regular premium to the ULIP plan.
2. Fund allocation: A portion of the premium is allocated towards Life Insurance coverage, and the rest is invested in funds of the policyholder's choice, such as equity, debt, or a mix of both.
3. Fund performance: The performance of the funds depends on market conditions and the underlying assets.
4. Charges: ULIPs have charges such as premium allocation charges, mortality charges, fund management charges, and surrender charges.
5. Life Insurance coverage: ULIPs offer Life Insurance coverage, providing financial security to the policyholder's family in case of their death.
6. Investment options: ULIPs offer various investment options, such as equity funds, debt funds, balanced funds, and others. The policyholder can choose the type of fund based on their risk appetite and financial goals.
7. Flexibility: Policyholders can choose the type of funds they want to invest in based on their risk appetite and financial goals. Additionally, policyholders can switch between funds according to market conditions or their financial objectives.
8. Lock-in period: ULIPs have a lock-in period of five years, which means the policyholder cannot withdraw the funds before the end of the lock-in period.
9. Partial withdrawals: Policyholders can make partial withdrawals after the completion of the lock-in period to meet any financial emergencies.
- Premium allocation charges: A one-time charge deducted from the premium to cover policy issuance and administration costs.
- Mortality charges: The cost of Life Insurance coverage, deducted from the premium based on the policyholder's age, health, and life expectancy.
- Fund management charges: The cost of managing the funds invested in the ULIP plan, deducted from the fund value as a percentage of the total assets under management.
- Policy administration charges: The cost of administering the policy, deducted from the premium.
- Surrender charges: A deduction from the fund value if the policyholder surrenders the ULIP plan before the end of the lock-in period. Surrender charges are typically high in the initial years of the policy and reduce over time.
- Switching charges: A charge levied when the policyholder switches between funds.
- Dual benefits: ULIP Plans offer both Life Insurance coverage and investment opportunities. This means that you can get financial protection for your loved ones and grow your wealth at the same time.
- Flexibility: ULIP Plans offer flexible investment options. You can choose the type of funds to invest in based on your risk appetite and financial goals. You can also switch between funds as needed.
- Wealth creation: ULIP Plans have the potential to provide higher returns than traditional insurance products due to their investment component. This makes them a good option for individuals who want to grow their wealth in the long term.
- Transparency: ULIP Plans offer transparency in terms of their investment performance, charges, and fees. This helps you make informed investment decisions.
- Financial discipline: ULIP Plans encourage financial discipline as you need to pay regular premiums towards the policy. This can help you develop the habit of saving and investing.
- Tax benefits: ULIP Plans offer tax benefits under the Income Tax Act of India. You can get a tax deduction on the premiums you pay, and the maturity or death benefit you receive is also tax-free.
- The policyholder should be at least 18 years old.
- The policyholder should have a regular source of income to pay the premiums.
- The policyholder should not have any pre-existing medical conditions that could affect their life expectancy.
- The policyholder should have valid KYC documents, such as an Aadhaar card and PAN card.
- The policyholder should have a clear investment objective and financial goal in mind.
- The policyholder should understand their risk appetite and choose the type of fund based on their risk profile.
- The policyholder should choose a policy term that best suits their financial goals and risk appetite.
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**Sec 10(10D) benefit is available subject to fulfilment of conditions specified therein
***These investments are subject to market risks and change in fundamentals such as tax rates etc., affecting the investment portfolio. Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors.
#Provided all due premiums are paid
^ As per annual audited figures submitted to IRDAI for the period FY 22 – 23 for individual death claims paid.
$ As on 30th November 2023
$$ As on 31st December 2023
2Male- 30 yrs invests in ABSLI Nishchit Aayush Plan with Level Income with Return of Premium Option. He chooses premium payment term 10 yrs, policy term 40 years, benefit option -Long Term Income, Deferment Period 0 years, Sum Assured 10 times of Annualized Premium. Premium is exclusive of GST. Annualized Premium is ₹1,00,000 (Exclusive of GST.). Total Amount = Total income paid till maturity (40,100*40= 16,04,000) + Maturity Benefit (ROP)- 10,00,000 = 26,04,000
1ABSLI DigiShield Plan scenario: Female, non-smoker, Age: 21 years, level Term Insurance, Premium paying Term: regular pay, policy term: 25 years, Pay frequency: Annual Premium of ₹ 6500/12 months = ₹ 542/month) Exclusive of GST (offline premium).
3Scenario: Healthy male age 25 years, premium paying term 10 years, policy term 20 years, payment frequency monthly, Sum Assured Rs. 16.20 lakhs, Premium Rs.10000/month excluding GST), you get Rs. 30.48 lakhs by age 45.
4Male age 60 years, Annuity Option -Life Annuity, Annuity Payout Frequency-Annual, Option chosen of Premium, Purchase Price Rs.10,00,000, Level Annuity, PPT: Single Pay, Single Life. Receive Annuity Rs.89,496 per annum/-
ABSLI Nishchit Aayush Plan (UIN: 109N137V06) is a non-linked non-participating individual savings life insurance plan.
ABSLI DigiShield Plan (UIN: 109N108V11) is a non-linked non-participating individual pure risk premium life insurance plan.
ABSLI Assured Savings Plan (UIN: 109N134V08) is a non-linked non-participating individual savings life insurance plan.
ABSLI Guaranteed Annuity Plus Plan (UIN: 109N132V09) is a non-linked non-participating general annuity plan.
The Past performance of the Unit linked fund(s) of the company is not necessarily indicative of the future performance of any of these Unit linked fund(s).
This policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI).
Aditya Birla Sun Life Insurance Company Limited is only the name of the Company and does not in any way indicate the quality of the contract, its future prospects or returns.
The name of the funds offered in this plan does not in any way indicate their quality, future prospects or returns. The charges are guaranteed throughout the term of the policy unless specifically mentioned and subject to IRDAI approval. The value of the segregated fund reflects the value of the underlying investments. These investments are subject to market risks and change in fundamentals such as tax rates etc affecting the investment portfolio. Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of the fund and factors' influencing the capital market and the insured is responsible for his or her decision. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of segregated fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. There is no guarantee or assurance of returns above the guaranteed returns from the segregated funds. GST and any other applicable taxes levied as per extant tax laws shall be deducted from the premium or from the allotted units as applicable. An extra premium may be charged as per our then existing underwriting guidelines for substandard lives. The insurance cover for the life insured will commence on the policy issue date.
Honesty is the best policy.
Applicants should ensure that insurance details in the application form is filled by oneself with “Utmost good faith”.
Be honest & truthful about your medical history, health conditions, or any other complications.
Also, let the insurer know about any habits like use of alcohol, tobacco or any narcotics/ psychotropic substances in the present or past, to ease the process of Policy issuance and claim assessment process.
ADITYA BIRLA CAPITAL DIGITAL LIMITED is a corporate agent of Aditya Birla Sun Life Insurance Company under IRDAI Registration No: CA0871 and does not underwrite the risk or act as an insurer.
Registered Address: 18th Floor, One World Center, Tower 1, Jupiter Mills Compound,841 Senapati Bapat Marg, Elphinstone Road Delisle Road, Mumbai Maharashtra 400013. Participation by the ABCD’s clients in the insurance products is purely on a voluntary basis.
The Trade Logo “Aditya Birla Capital” Displayed Above Is Owned By ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) And Used By ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the License. This policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). GST and any other applicable taxes will be added (extra) to your premium and levied as per extant tax laws. An extra premium may be charged as per our then existing underwriting guidelines for substandard lives, smokers or people having hazardous occupations etc. For policies issued on minor life, the date of commencement of risk shall be the date of commencement of the policy. Where a policy is issued on a minor life, the policy will vest after attainment of majority of the Life Insured. Where the Life Insured (whether major or minor) and Proposer/Policyholder is different, on the death of the Proposer/Policyholder, his legal heirs, in accordance with the existing succession laws, will be considered as new Proposer/Policyholder. Tax benefits are subject to changes in tax laws.
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding the sale. Registered Office: One World Centre Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013. IRDAI Reg No.109 | Toll Free No. 1-800-270-7000 | Website: https://lifeinsurance.adityabirlacapital.com| CIN: U99999MH2000PLC128110 | UIN: (Has been mentioned for individual products above)| ADV/3/23-24/3872
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IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.